THEVALUE OF           GENERIC DRUG PRICINGGENERICS   AND AVAILABILITY           Jim Keon, President           Canadian Gen...
In the last several years, theprice of generic drugs hasfallen dramatically.The economic rationale forusing generics has n...
TOTAL NUMBER OF PRESCRIPTIONS (%)527 MILLION PRESCRIPTIONS GENERIC                                    In 2012, of the 559 ...
8-YEAR AVERAGE RETAIL PRICE - GENERIC vs. BRAND-NAME    The average retail price of a generic prescription is $25.04    ve...
GENERIC vs. BRAND DRUG PRICING MODELS1             BRITISH COLUMBIA             ALBERTA             SASKATCHEWAN          ...
GENERIC vs. BRAND DRUG PRICING MODELS1             QUEBEC             NEW BRUNSWICK             NOVA SCOTIA             PR...
ADDITIONA PROVINCIAL COST SAVINGS FOR CANADIANS      Six of the leading generic drugs on the market will be priced      at...
TENDERING GENERIC DRUGS: WHAT ARE THE RISKS?     • Potential drug shortages because of less redundancy in       the drug s...
VALUE OF GENERIC MANUFACTURER’S LITIGATION          EIGHT OF THE TEN TOP-SELLING DRUGS IN CANADA       LAUNCHED AS A RESUL...
INTERNATIONAL PRICE COMPARISONS     INTERNATIONAL STUDIES ON PRICES OF GENERIC     PHARMACEUTICAL PRODUCTS:          • Mea...
GENERIC PRESCRIPTION MARKET - CANADA VS. U.S.                                   In the United States generic           80%...
Using independent, third partydata from IMS Brogan and theCanadian Institute for HealthInformation (CIHI) the CGPA hascalc...
Jim Keon, PresidentCanadian Generic Pharmaceutical Association
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Jim Keon - Generic Drug Pricing and Availability

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Jim Keon - Generic Drug Pricing and Availability

  1. 1. THEVALUE OF GENERIC DRUG PRICINGGENERICS AND AVAILABILITY Jim Keon, President Canadian Generic Pharmaceutical Association
  2. 2. In the last several years, theprice of generic drugs hasfallen dramatically.The economic rationale forusing generics has neverbeen stronger.
  3. 3. TOTAL NUMBER OF PRESCRIPTIONS (%)527 MILLION PRESCRIPTIONS GENERIC In 2012, of the 559 million prescriptions written in Canada, more than 63% of them were filled using generic drugs. BRAND -NAME The cost of these generic medicines represented only 24% of the $22 billion dollars Canadians spent onTOTAL MARKET COST (%) prescription drugs.21.1 BILLION DOLLARSGENERIC While brand-name drugs were used to fill only 37% of prescriptions, they represented more than 76% of the total cost of prescriptions.BRAND-NAME source:
  4. 4. 8-YEAR AVERAGE RETAIL PRICE - GENERIC vs. BRAND-NAME The average retail price of a generic prescription is $25.04 versus $73.76 for a brand-name prescription. Over an eight-year period the average price of a brand-name drug prescription has risen from $60 to almost $74 which represents a 21% increase.
  5. 5. GENERIC vs. BRAND DRUG PRICING MODELS1 BRITISH COLUMBIA ALBERTA SASKATCHEWAN MANITOBA ONTARIO All provinces provide for price exemptions. 1. The data are as of fall 2012.
  6. 6. GENERIC vs. BRAND DRUG PRICING MODELS1 QUEBEC NEW BRUNSWICK NOVA SCOTIA PRINCE EDWARD ISLAND NEWFOUNDLAND/LABRADOR All provinces provide for price exemptions. 1. The data are as of fall 2012.
  7. 7. ADDITIONA PROVINCIAL COST SAVINGS FOR CANADIANS Six of the leading generic drugs on the market will be priced at 18% of brand-name drug price • Atorvastatin • Ramipril • Venlafaxine • Amlodipine • Omeprazole • Rabeprazole Representing 20% of generic drug sales in Canada
  8. 8. TENDERING GENERIC DRUGS: WHAT ARE THE RISKS? • Potential drug shortages because of less redundancy in the drug supply system. • Less patent litigation by generic manufacturers resulting in delayed availability of lower-cost generic drugs. • Less manufacturing of generic drugs in Canada. • Closure of some generic drugs manufacturing plants in Canada. • Less competition in the generic drug markets in Canada. • Less customer service offered by generic suppliers to pharmacies. • Less free customer service in the remaining pharmacies. Tendering Generic Drugs: What Are The Risks? October 24, 2012 – Professor Aidan Hollis, Department of Economics, University of Calgary, and Paul Grootendorst, University of Toronto, Faculty of Pharmacy
  9. 9. VALUE OF GENERIC MANUFACTURER’S LITIGATION EIGHT OF THE TEN TOP-SELLING DRUGS IN CANADA LAUNCHED AS A RESULT OF GENERIC COMPANY LITIGATION SAVINGS IN BILLIONS OF DOLLARS
  10. 10. INTERNATIONAL PRICE COMPARISONS INTERNATIONAL STUDIES ON PRICES OF GENERIC PHARMACEUTICAL PRODUCTS: • Measure manufacturer EX-factory prices. Prices DO NOT reflect total cost to payers in each market. • Prices are On-invoice Prices. Off-invoice discounts, free goods, rebates, etc. are not included. • Canadian prices DO NOT reflect manufacturer’s net prices – only the reimbursed/retail prices. • In Canada, retail/reimbursed prices include significant support for the services that community pharmacies provide to patients. • In other countries (e.g. United Sates) retailers purchase products from manufacturer then mark-up to sustainable prices. NOT the Canadian model.
  11. 11. GENERIC PRESCRIPTION MARKET - CANADA VS. U.S. In the United States generic 80% drugs are dispensed to fill 80% of all prescriptions. In Canada it’s only 60%. If the use of generic drugs in Canada increased by 20% and matched the America levels, Canada’s health-care system would have saved nearly 3-billion dollars in 2011. 60%
  12. 12. Using independent, third partydata from IMS Brogan and theCanadian Institute for HealthInformation (CIHI) the CGPA hascalculated the savings availableto each province for every onepercent increase in the use ofgeneric drugs.For every one percent increasein the use of generic drugs inCanada, Canadians save anadditional 262-million dollars.
  13. 13. Jim Keon, PresidentCanadian Generic Pharmaceutical Association

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